U.S. short-term Treasury yields rose after Federal Reserve Chairman Waller said inflation has not shown meaningful signs of slowing and that policymakers must remain confident prices are improving. During his speech, the two-year Treasury yield increased 5 basis points to 4.28%, while the 30-year yield fell 1 basis point to 5.19%. The move suggested markets see a greater possibility of higher short-term interest rates, even as longer-term yields declined. Traders had questioned Waller’s policy stance since his first press conference in June, when he stressed the need to reduce inflation and adopted a hawkish position. U.S. inflation has remained above the Fed’s 2% target since the global economy reopened in 2021. The Fed left interest rates unchanged again in July, while Waller did not say whether rates could rise this year. He reiterated that policymakers intend to return inflation to 2%, calling that objective clear and fixed, and said the central bank "has work to do" if inflation does not improve.